Why Engineer-to-Order Portfolio Rationalization Stalls: Challenges in Standardization, Modularization, Platform Design and Mass Customization

Abstract

There are various strategies to control complexity and variety growth in ETO businesses. Such portfolio rationalization initiatives sometimes stall. This paper elaborates on the challenges that cause this. Challenges described in literature and challenges seen in five different industry cases are consolidated. The challenges are combined into groups and presented in the ADKAR change management model. The authors intend this list to be used for guidance In industry and expect the collection to be extended with future industry cases and challenges.

Identifying modular candidates in engineer-to-order companies

“…This research paper was initiated based on an industrial problem, the problem was clarified and supported by the findings of a literature review (Bertram et al, 2020; Gepp et al, 2016; Haug et al, 2013; Willner et al, 2016). Though the industrial problem and the criteria for the framework cannot claim to represent all ETO companies, as definitions are broad and companies and industries differ (Gepp et al, 2016; Willner et al, 2016).…”

“…In terms of ETO-specific literature, however, there are only limited examples of methods and successful case studies (Gepp et al, 2016). A reason for this is the lack of information available to decide which products to include in future modular initiatives (Bertram et al, 2020). Unaddressed problems such as complex product structures, open solution space of future variants and product portfolios consisting of prior customized products are described as reasons for the research gap in ETO-specific methods and cases (ElMaraghy et al, 2013; Fisk, 2004; Willner et al, 2016).…”

“…Having or acquiring the knowledge to make change to product architectures is a problem in ETO companies (Bertram et al, 2020). Based on this, the authors believe that a method for finding modular candidates should develop the knowledge needed to do so.…”